Frist won't be charged in stock sale

[EV_Ares]

WASHINGTON (AP) — The Securities and Exchange Commission has decided not to file insider-trading charges against former Senate Majority Leader Bill Frist in connection with the sales of stock in the hospital chain his family owns, The Washington Post reported Friday.
An 18-month investigation by the SEC staff and the U.S. attorney in the Southern District of New York ended without action against the Tennessee Republican, the Post reported.

Frist had a formal interview with Justice Department and SEC lawyers to address the stock sales in late January, the Post reported, citing unidentified sources.

In a statement, Frist said he had "acted properly" and that his only reason for selling HCA Inc. stock in his trust accounts was to "eliminate the appearance of a conflict of interest."

Frist spokesman Matt Lehigh said the doctor would not comment beyond the statement.

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The sales came in 2005 as Frist was weighing whether to run for the Republican nomination for president, which he eventually decided against. When the sales came to light, he denied having any insider information about HCA.

"I've always conducted myself according to the highest ethical standards in both my personal and public life, and my family and I are pleased that this matter has been resolved," he said in the statement.

Federal officials in September 2005 opened the investigation into Frist's sales of all his stock in HCA, the Nashville-based company his father and brother founded. The sales were completed by July 1, 2005, two weeks before share prices fell 9%.

HCA insiders were selling off shares as early as January 2005, with the largest sales taking place in April, May and June of that year. The insider sell-off totaled about 2.3 million shares worth at least $112 million.

Frist had held HCA stock in a blind trust with approval of the Senate Ethics Committee and contended that he had no idea of its value or that of any of his stock holdings. Documents filed with the Senate showed that Frist was often updated by trustees about changes to his trusts, including the addition and sale of HCA stock. He also had HCA shares in other trusts.


http://www.usatoday.com/money/markets/2007-04-27-frist-stock_N.htm

[annabanana]

1. The well is poisoned. What do we know of the US Atty?

Michael J. Garcia is the current United States Attorney for the Southern District of New York.

Is he a loyal Bushie? How did he avoid "the list"?

[Vinca]

2. Bingo. Garcia keeps his job. nt

[salin]

3. and *that* is a big problem with the purge.... every decision by those

employed by the DOJ per which suits to pursue and which to drop - are suspect - rightly or not. They just are. I don't think a lot of folks who don't follow the news realize how serious this scandal really is.

Running justice as a political arm of the White House has serious repercussions - political prosecutions and nonprosecutions. And leaving all actions suspect.

[irish.lambchop]

5. And that's why

the bigger question always has been what did the U.S. attorneys that kept their jobs do. I wonder how many 'successful' prosecutions will now be back in the courts screaming political persecution. Everything in the system has become tainted because of this.

[salin]

6. Bingo!

I think the stories that will flow from this will continue to come forth and multiply - until it is too "in the face" for much of the public to ignore and not understand.

[deminks]

4. I googled a little bit last night

He was with Homeland Security in 2003, and appointed to this spot in 2005.

http://www.whitehouse.gov/news/nominations/530.html

http://www.whitehouse.gov/government/garciam-bio.html

[RUMMYisFROSTED]

12. Appointed in 2005?

An 18-month investigation by the SEC staff and the U.S. attorney in the Southern District of New York ended without action against the Tennessee Republican, the Post reported.


18 months ago?

[in_cog_ni_to]

7. OK...since this administration has made US attorney jobs POLITICAL,

what are the POLITICS of the U.S. attorney in the Southern District of New York???

This is just SHOCKING!!! I cannot believe this has happened! I trusted the people doing this investigation to do the right thing!:eyes::sarcasm:

[Delphinus]

8. How different is this than what Martha Stewart

spent time in jail for?

[irish.lambchop]

9. I believe

Martha was never charged with insider trading - she was, rather, charged with lying.

[annabanana]

10. AFAIK Martha was never Senate Majority Leader.

I have much higher expectations of a Senate Majority Leader than I do of a lifestyle maven.

[Delphinus]

11. Totally agreed ...

I was trying to understand why Frist would get a pass and Stewart would go to jail.